Start a Food Truck Business in India: A Complete Checklist
Nowadays, due to growing popularity among the youth, every embryonic entrepreneur wants to start a Food Truck Business in India, i.e., Meal on Wheels Business. Further, the reasons for the growth and Popularity are High-profit Margins, Less Workforce, and Ease in Future Expansion.
In this article, we will discuss the checklist of requirements to start a Food Truck Business in India, together with its Benefits.
Overview of Food Truck Business in India
The term “Food Truck Business” denotes an eatery that can move to the place where customers are located. It is one of the hottest trends in the Food Sector right now. Further, the main reason for their growth is the continuous change in food demands.
This business is also known as Mobile Food Business and includes all sorts of food items, starting from ice cream to snack and barbeque food.
Further, as per a report published by the CISION PR Newswire, the Fast Food Market of India is expected to grow at 18% CAGR (Compound Annual Growth Rate) and to reach the worth of US$ 27.57 billion by the end of 2020.
Benefits of Food Truck Business
The benefits of starting a Food Truck Business in India are as follows:
As we know, a location is enough to make or break a business. In the case of a Café or Restaurant, one cannot change the location. However, one of the main benefits of a Food Truck Business in India is Flexible Location. That means a food truck can easily operate in multiple locations that, too, in a hassle-free manner.
The cost of starting a Food Truck in India is 30 to 35% less than in comparison to a fully fledged hotel or restaurant.
The factors that assist in reducing the cost of a Food Truck Business are as follows:
- Lesser Space;
- Minimal Equipment and Cutlery;
- Minimal Furnishing;
- Less Staff;
- No Rent or Lease;
- Less Electricity;
Enable Food Experimenting
Due to low cost investment, a food truck owner can easily experiment in the quality of his/her food items to satisfy the needs of the customers, that, too without the fear of financial loss.
The Mobility Factor in a Food Truck Business gives it a benefit in better Customer Outreach than a Café or Restaurant. That means a café and restaurant waits for the customers to reach them, whereas a Food Truck Business has the advantage of reaching the customers to get its food tasted.
Key Players of the Food Truck Business in India
The key players of the food truck business in India are s follows:
- Super Sucker in Gurgaon;
- SWAT in Bangalore;
- Mumbai Rolling Kitchen in Mumbai;
- TGIF Kolkata;
- Chaska in Chennai;
- The Lalit Food Truck Company in Jaipur;
- Desi Firangi in Chandigarh;
- Hungry Hands in Kolkata;
- Oh Bouy, Noida;
- Eat and Run in Mumbai;
- Paranthawalas and Grills in Hyderabad;
- Road Kills in Bangalore;
- Go Waffles in Bangalore;
- Sushi House Mafia in Gurgaon;
- EGGjactly, Gurgaon;
- Auto Express in Hyderabad;
- Square Ruth in Bangalore;
- Spitfire BBQ Truck in Bangalore;
- Red Wok Chinese in Surat;
- Fried and Fabulous Food Truck in Bangalore;
- Ravi Gobi Chinese Centre Food Truck Business in Bangalore;
Also, Read: Checklist to Start a Bakery in India
Checklist to Start a Food Truck Business in India
The items included in the checklist to start a Food Truck Business in India are as follows:
Select the Right Commercial Vehicle or Food Truck
The first step in the checklist to start a Food Truck Business in India is to select the right Commercial Vehicle or Food Truck.
In the case of a new Foods Truck, the owner would need at least 18 feet long space, which would cost him/her around Rs 7 to 8 lakhs. However, one can buy some old commercial vehicle as well to cut down the cost incurred to Rs 1 to 2 lakhs.
But when an owner decides to buy an Old Commercial Vehicle, it should take into consideration the factors as follows:
- Must Check for Proper Fitness Certificate;
- Vehicle Registration;
- Road Tax Receipt;
- Vehicle Insurance; and
- Must not be more than 5 years old;
However, one should always buy a light commercial vehicle rather than a big size vehicle, as most of the cities, such as Delhi, does not allow the parking of Big Sized Vehicles after 9:00 PM.
Choose the Right Location
Another significant factor in the checklist to start a Food Truck Business in India is the right location. One should choose only that place where the customer availability (especially youth) is high but does not have too many food vendors.
Moreover, the place should have a regular traffic flow, commercial offices, establishment with young professionals, and students to invite large footfalls.
Acquire Kitchen Equipment and Raw Material
A Food Truck Owner may incur a cost around Rs 3 lakhs in buying the Equipment and Raw Material for the Truck.
The term “Equipment” includes the following:
- Working Tables;
- Exhaust Fan; and
- Inverter and its Batteries;
Further, it is always suggested that one must buy new equipment as most of the electronic items have only 1 year Warranty, and the new ones would cut down the regular cost of maintenance.
Besides the Kitchen Equipment and Electronic Items, a Food Truck Owner must store raw material on a weekly basis, which would cost around Rs 30000. Moreover, it is advisable to keep raw material less for a few starting weeks, as when the sale increases, one must increase the quantity as well.
Apply for Licenses and Permit
As there are neither any specifically defined laws nor any set of documents concerning the Food Truck/ Restaurant Business in India, it is significant to obtain certain licenses.
The Licenses required to start a Food Truck Business in India are as follow:
As a Food Truck Business comes under the domain of Food Business Operators (FBOs), it becomes compulsory for the owner to acquire FSSAI License prior to commencing its business operations.
As we know, a commercial vehicle plays a notable role in performing the business operations of the food truck. Therefore, a food truck owner must obtain a vehicle license granted by the RTO (Regional Transport Office) of commercial vehicles for starting a food truck business in India.
If a food truck satisfies the criterion prescribed by the GST Act, it must obtain a compulsory GST Registration.
Every Food Truck Owner must obtain a Fire NOC or Fire Security Certificate from the State Fire Department in which he/she wants to start a Food Truck Business. The authorities will issue this certificate only after the proper installation of fire extinguishers and other safety measures in the truck.
Shop and Establishment License
The main objective behind the introduction of the Shop License was to defend and safeguard the rights of the workers employed in the Food Truck.
Kitchen and Vehicle Insurance
Nowadays, Food Trucks compulsorily need to apply for insurance policies such as Kitchen Insurance and Vehicle Insurance.
Approval Letter from Local Municipal Authority
After choosing the Location for the Business, the owner must obtain a duly stamped Written Document, known as the Approval Letter from the Local Municipal Authority, for starting a Food Truck Business in India.
NOC from RTO
Lastly, a food truck owner needs to acquire Commercial Vehicle Certificate from the RTO for selling food items on wheels.
Hire the Required Manpower
In a typical Food Truck Business Format, a maximum of 2 Chefs and 1 Helper are needed to take care of the entire food truck operations.
Further, the average salary of the chefs will cost around Rs 15000 to 18000 to the owner. In contrast, the helper will charge a maximum of Rs 8000 to 9000.
Moreover, suppose the owner wants to start a delivery model. In that case, he/she needs to appoint at least 2 delivery boys or can tie-up with the Third-party Logistics Company, such as Swiggy, Zomato, Uber Eats, etc. these companies will charge around 45 to 50% per delivery.
Install POS Software
One of the most significant factors in the checklist to start a Food Truck Business in India is the Installation of POS Software.
It is always suggested to have good POS (Point of Sale) Software to keep the data safe. This software requires detailed information regarding the Inventory and Sales.
Further, a good POS can either make or break one business in the competitive market as a lot of food vendors, and restaurants including the Quick Service Restaurants, use this software to get customer feedback and order data.
Lastly, excellent POS software would cost the owner around Rs 24000 per annum.
Decide the Staff Uniform
The staff uniform provides an overall brand feel to the Food Truck Business, which, in return, will increase sales and customer satisfaction and trust.
Market the Food Truck
The different ways of Marketing a Food Truck in India are as follows:
- Distribute Menu Pamphlets;
- Create Billboard and Banners near a catchy location;
- Create an Instagram Page;
- Increase the Presence of the Business of different Social Media Platforms;
- Inform the Customers about the Location of the Food Truck;
- Offer Discounts;
- Continuously Modify the Menu;
- Tie-up with Event Planners;
- Offer Free Goodies;
- Contact Food Bloggers for Reviewing Food;
Calculate the Total Investment Required
The average cost of commencing a food truck business in India is around Rs 10 Lakhs. However, it varies mainly as per the type of vehicle the owner is willing to opt for and the kitchen equipment. The factors involved in the overall cost to start a Food Truck Business in India are as follows:
- Commercial Vehicle;
- POS Software;
- Staff and Workforce;
- Kitchen Equipment;
- Raw Materials;
- License and Permits;
- Staff Uniform; and
- Miscellaneous Items;
Miscellaneous Things Required
The term “Miscellaneous Things” includes items such as Mobile Phones; Calculator; an Attendance Register; Daily Book; Dustbins; Standing Tables, etc.
If you want to start a Food Truck Business in India and have carefully understood the checklist given in the blog, you have already started the journey to start a Food Truck Business in India.
More on Food Business: How to Start a Restaurant Business in India
Further, at Swarit Advisors, our experts will assist you in acquiring FSSAI License, GST Registration, Fire NOC, Shop License, and all the other licenses mentioned above.